HomeMy WebLinkAboutConfirming Tax Abatement - Schafer Industries, Inc. 4701 Nimtz Parkway (5 Year Personal Property)Attest.
RESOLUTION
4459 -15
Passed by the Common Council of the City of South Bend,
June 22,
15
20 .
Presented by me to the Mayor of the City of South Bend, Indiana
June 23 20 15
City Clerk
President of Common Council
Approved and signed by me --1V 0 t q J 20 1 s-
City Clerk
RESOLUTION NO. ' l SI—
A RESOLUTION CONFIRMING THE ADOPTION OF A DECLARATORY
RESOLUTION DESIGNATING CERTAIN AREAS WITHIN THE CITY OF
SOUTH BEND, INDIANA, COMMONLY KNOWN AS
4701 Nimtz Parkway, South Bend, IN 46628
AS AN ECONOMIC REVITALIZATION AREA FOR
PURPOSES OF A FIVE (5) YEAR PERSONAL
PROPERTY TAX ABATEMENT FOR
Schafer Industries, Inc.
WHEREAS, the Common Council of the City of South Bend, Indiana, has adopted a
Declaratory Resolution designating certain areas within the City as Economic Revitalization Areas
for the purpose of tax abatement consideration; and
WHEREAS, a Declaratory Resolution designated the area commonly known as 4701
Nimtz Parkway, South Bend, IN 46628 and which is more particularly described as follows:
Business Personal Property
and which has Key Numbers 71- 025 -500 -23829 be designated as an Economic Revitalization
Area; and
WHEREAS, notice of the adoption of a Declaratory Resolution and the public hearing
before the Council has been published pursuant to Indiana Code 6 -1.1- 12.1 -2.5; and
WHEREAS, the Council held a public hearing for the purposes of hearing all
remonstrances and objections from interested persons; and
WHEREAS, the Council has determined that the qualifications for an economic
revitalization area have been met.
NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of South
Bend, Indiana, as follows:
SECTION I. The Common Council hereby confirms its Declaratory Resolution designating the
area described herein as an Economic Revitalization Area for the purposes of tax abatement. Such
designation is for personal property tax abatement only and is limited to two (2) calendar years
from the date of adoption of the Declaratory Resolution by the Common Council.
SECTION II. The Common Council hereby determines that the property owner is qualified for
and is granted personal property tax deduction for a period of five (5) years as shown by the
attachment pursuant to Indiana Code 6- 1.1- 12.1 -17 and further determines that the petition, the
Memorandum of Agreement between the Petitioner and the City of South Bend, and the Statement
of Benefits comply with Chapter 2, Article 6, of the Municipal Code of the City of South Bend
and Indiana Code 6- 1.1 -12 et seq.
SECTION III. This Resolution shall be in full force and effect from and after its adoption by the
Common Council and approved by the Mayor
e9xs�arm .
ADOPTED (_0 _L'1rI,J
Member of-the Common Council
U 1
CITY CLERK, EOt THIEND, IN
227 W. JEFFERSON BOULEVARD
SuITE 1400 S.
SOUTH BEND, IN 46601 -1830
May 12, 2015
CITY OF SOUTH BEND PETE BUTTIGIEG, MAYOR
COMMUNITY INVESTMENT
SCOTT FORD, EXECUTIVE DIRECTOR
Council Member Gavin Ferlic, Chairperson
Community Investment Committee
South Bend Common Council
4th Floor, County City Building
South Bend, IN 46601
RE: Personal Property Tax Abatement Petition for: Schafer Industries, Inc.
Dear Council Member Ferlic:
PHONE: 574 /235 -9371
FAx:574/235 -9021
Please find the attached information pertaining to a personal property tax abatement
petition for Schafer Industries, Inc.:
➢ Department of Community Investment's summary report
➢ Copy of the petition
➢ Statement of Benefits form
➢ Supporting information.
The report contains the Department's findings relative to the above petition. Schafer
Industries, Inc. will be purchasing and installing approximately $2,450,000 of new
equipment to meet market demands and acquire new customers. The project meets the
qualifications for a (5) five year personal property tax abatement and a representative from
Schafer Industries, Inc. will be available to meet with the Committee on Tuesday, May 26,
2015.
Should you or any of the other Council members have any questions concerning the report,
or need additional information, please feel free to call me at 235 -9339.
Sincerely,
-;5 /24-n
Brock Zeeb
Director Economic Resources
Attachments
cc: South Bend Common Council Members
Mayor Pete Buttigieg
Scott Ford
Chris Fielding
PLANNING NEIGHBORHOOD ENGAGEMENT BUSINESS DEVELOPMENT ECONOMIC RESOURCES
JITIN KAIN PAMELA C. MEYER CHRIS FIELDING BRocKZEEB
TAX ABATEMENT REPORT
TO: SOUTH BEND COMMON COUNCIL
FROM: BROCK ZEEB
SUBJECT: PERSONAL PROPERTY TAX ABATEMENT PETITION FOR:
Schafer Industries, Inc.
DATE: May 18, 2015
On Thursday, May 7, 2015, a petition from Schafer Industries, Inc. was received and
subsequently filed with the City Clerk for personal property tax abatement consideration
for property to be located at 4701 Nimtz Parkway, South Bend, IN 46628. Pursuant to
Chapter 2, Article 6, Section 2 -84.2 of the Municipal Code of the City of South Bend, this
petition was referred to the Department of Community Investment for purposes of
investigation and preparation of a report determining whether the area qualifies as an
Economic Revitalization Area pursuant to I.C.6 -1.1 -12.1 and whether all zoning
requirements have been met.
The Department of Community Investment has reviewed the petition (a copy of which is
attached), investigated the area, and makes the following report.
PROJECT SUMMARY
➢ One CNC Gear Hobbing machine, one CNC Gear Deburring machine, two CNC
Gear Grinding machines being purchased to meet market needs and to help attract
new customers
➢ New project taxes over the five year abatement period — $210,178
➢ Estimated taxes being abated over the five year abatement period — $96,848
➢ Total taxes to be paid on new and existing equipment over the five year abatement
period — $113,330
EMPLOYMENT IMPACT
Per the petition, it is estimated that the total project will:
➢ Create (4) four permanent, full -time and zero (0) permanent, part-time jobs within
the first year, representing a new annual payroll of $35,360 per job
➢ Maintain (38) thirty eight existing permanent full -time and (0) zero existing part-
time jobs with a payroll of $3,700,000.
➢ The project will create 4 jobs over ten years with a payroll of $353,600 per job.
PLANNING NEIGHBORHOOD ENGAGEMENT BUSINESS DEVELOPMENT ECONOMIC RESOURCES
JMN KAIN PAMELA C. MEYER CHRIS FIELDING BROCK ZEEB
ABATEMENT QUALIFICATION
1. A review of the tax abatements previously granted, finds that the petitioner has
been granted any previous abatements.
2. The Building Commissioner has reviewed the petition and finds the property to be
properly zoned for the proposed project.
3. A review of the South Bend Redevelopment designation areas finds that the property
is located in the River West Development Area.
4. A review of the Tax Abatement Ordinance No. 9394 -03 finds that the petitioner
meets the qualifications for a (5) five -year personal property tax abatement under
section 2 -84.2, Tangible Personal Property Tax Abatement.
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Investment Details
puMtclntrastrutture;peeds iQff- Hasany50afundipg peen
slteo[proJgglq dollars) J'. recehred7
What6the value-of any equiymentbeing puchasedN
Indiana fortheprojecti
Whatisihe valueoieny equlpmank)leing?
pur4has¢d from oat pfstatetortheprojeet'J
No
No
Zero
$2,450,000